In July, the Trump administration outlined its goals, saying reducing trade deficits were a top priority.

Trump, a Republican, promised during his campaign to overhaul or eliminate the North American Free Trade Agreement, which he cast as killing jobs and exacerbating the USA deficit, and to adopt a more protectionist stance for trade generally.

It's Trump's latest comment in a long series of statements about the trade deal, which came to the forefront during the 2016 presidential campaign.

"We want to strengthen our relationship as Mexico's most trusted dairy trading partner so we can continue to work together for the benefit of dairy sectors on both sides of the border", said USDEC President and CEO Tom Vilsack. It would normally be a big negative for the loonie and peso but I'm starting to think Trump doesn't have the support to win.

Trump tells supporters in Phoenix, US, that he might terminate the NAFTA treaty with Mexico and Canada to jumpstart negotiations. He called the president "full of threats and bluster", and said Trump missed an important opportunity. USA farm groups have urged the administration to avoid any disruption in the duty-free trade. This is a significant concern to USA and Mexican cheesemakers because it would give the European Union exclusive use of common cheese names like asiago, gorgonzola and feta.

During the first round of talks, August 16-20, the three nations agreed to an "accelerated and comprehensive negotiation process" to update trade rules for the world's largest free-trade region.

"It sounds like he's unequivocal, the Mexican president, that he's not going to pay for it".

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